Luxury brands and business schools in Europe face increasing pressure to promote sustainable and ethical practices in response to the demands of millennial and generation-Z consumers.
European business schools have long been a valuable source of graduates for the global luxury goods sector. However, as the values and priorities of consumers shift towards sustainability and ethical practices, luxury brands and the institutions that teach about the industry are facing new challenges. In response to the demands of millennial and generation-Z consumers, business schools are adapting their programs to equip students with the knowledge and skills needed to navigate the changing landscape of the luxury market.
The Rise of Sustainable Luxury
Millennial and generation-Z consumers are increasingly conscious of climate change and are seeking to align themselves with brands that prioritize sustainability. According to a survey conducted by Boston Consulting Group and Altagamma, 72% of generation-Z consumers consider a company’s commitment to sustainable development when making purchasing decisions. This shift in consumer behavior is putting pressure on luxury brands to not only offer covetable products but also demonstrate a genuine commitment to sustainability.
The Role of Business Schools
Business schools with luxury programs are recognizing the need to address sustainability and ethics in their curricula. Julia Pueschel, director of the MSc in luxury marketing at Neoma Business School, highlights that sustainability consistently emerges as a central theme in student discussions and research projects. To meet this demand, business schools are equipping students with knowledge of ethical business practices, environmental expertise, and an understanding of key sustainability concepts.
The Importance of Sustainability Education
Business schools are incorporating sustainability education into their programs to ensure students have a comprehensive understanding of the complexities of sustainability in the luxury sector. Concepts such as lifecycle analysis, circular economy principles, and sustainable materials and processes are being taught to provide students with the necessary tools to make informed decisions. Isabelle Chaboud, program director of the MSc in fashion, design, and luxury management at Grenoble Ecole de Management, emphasizes the importance of teaching students about new ownership business models, such as renting and upcycling, to foster a more sustainable approach to luxury consumption.
Specialized Programs in Sustainable Luxury Management
Recognizing the growing demand for professionals with expertise in sustainable luxury management, business schools are launching specialized programs. In 2024, Audencia Business School will introduce the first MSc in sustainable luxury management at its Paris campus. The program aims to align business skills with sustainable thinking, enabling graduates to make companies both more sustainable and more profitable. This reflects the changing landscape of the luxury industry, where sustainability is becoming a key driver of success.
Balancing Tradition and Innovation
Luxury brands with long-standing legacies face the challenge of adapting to sustainable practices while maintaining their brand identity. Marie Veyrier-Montagneres, an innovation and sustainability project manager for Christian Dior Couture, acknowledges the initial difficulty of questioning existing frameworks within established luxury maisons. However, business schools play a crucial role in providing students with the tools and examples to challenge traditional practices and make positive impacts within the industry.
Conclusion:
As the luxury goods sector faces increasing pressure to prioritize sustainability and ethical practices, European business schools are adapting to meet the demands of millennial and generation-Z consumers. By incorporating sustainability education into their programs and launching specialized courses, these institutions are equipping students with the knowledge and skills needed to navigate the evolving landscape of the luxury market. With the rise of sustainable luxury, business schools are playing a critical role in shaping the future of the industry by fostering a new generation of professionals who can make a positive impact while upholding the values of luxury.
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